SCANSOURCE REPORTS FOURTH QUARTER AND YEAR-END RESULTS
GREENVILLE, SC - August 20, 2009 - ScanSource, Inc. (NASDAQ:SCSC), a leading international distributor of AIDC (automatic identification and data capture), point of sale, communications and electronic security products for the reseller market, today announced complete financial results for its fourth quarter and fiscal year ended June 30, 2009.
“In our fourth quarter, we had excellent results in certain areas of our business, specifically our Security and Communications sales units,” said Mike Baur, CEO, ScanSource, Inc. “Overall, we are pleased with our North American sales results, which are improving. And while our International business remains flat, we continue to be cautiously optimistic.”
For the quarter ended June 30, 2009, net sales decreased 20.4% to $441 million compared to $554 million for the quarter ended June 30, 2008. Quarterly operating income also decreased 17.4% to $20.0 million from $24.2 million for the comparable prior year quarter. Net income decreased 13.6% to $12.5 million for the quarter ended June 30, 2009 versus $14.5 million for the quarter ended June 30, 2008. The effective tax rate for the quarter was 37.4%, compared to 39.0% for the prior year quarter. Diluted earnings per share decreased 13.0% to $0.47 compared to $0.54 in the prior year quarter.
For the year ended June 30, 2009, net sales decreased 15.1% to $1.85 billion, compared to $2.18 billion for the prior year ended June 30, 2008. Fiscal year operating income also decreased 21.1% to $74.1 million from $94.0 million for the comparable prior fiscal year. Net income decreased 14.3% to $47.7 million compared to $55.6 million for the prior fiscal year ended June 30, 2008. The effective tax rate for the year was 37.0% compared to 38.3% for the prior fiscal year. Diluted earnings per share decreased 14.8% to $1.79 compared to $2.10 in the prior year.
Forecast for Next Quarter
The Company announced its revenue forecast for the first quarter of fiscal 2010. ScanSource expects net revenues for the September 2009 quarter could range from $445 million to $465 million.
Safe Harbor Statement
This press release contains comments that are “forward looking” statements that involve risks and uncertainties; these statements are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. Any number of important factors could cause actual results to differ materially from anticipated results including but not limited to macroeconomic circumstances that could impact our business, such as currency fluctuations, continued adverse capital and credit market conditions and a prolonged economic downturn. For more information concerning factors that could cause actual results to differ from anticipated results, see the Company’s annual report on Form 10-K for the year ended June 30, 2008 filed with, and the Company’s annual report on Form 10-K for the year ended June 30, 2009 to be filed with, the Securities and Exchange Commission.
About ScanSource, Inc.
ScanSource, Inc. (NASDAQ:SCSC) is a leading international distributor of specialty technology products, consisting of seven sales units in North America, Latin America and Europe.
ScanSource POS and Barcoding in North America, Latin America and Europe delivers AIDC and POS solutions; Catalyst Telecom in the U.S. and ScanSource Communications in North America and Europe, provide voice, video and converged communications equipment; and ScanSource Security in North America offers physical security solutions. Founded in 1992, the company ranks #854 on the Fortune 1000. For more information, call the toll-free sales telephone number at 800.944.2432 or visit www.scansourceinc.com